The following is an extract from Markit's monthly economic overview. For the full report please click the link at the bottom of the article.

Developed world leads global growth higher for first time in four months

Global economic growth picked up slightly for the first time in four months in July, according to Markit's worldwide PMI survey data. The JPMorgan Global PMI" rose from 53.1 in June to 53.4 in July, to signal a rate of global GDP growth of just over 2% per annum. A marked divergence was once again evident however, with robust expansion in the developed world contrasting with stagnation in the emerging markets.

Global PMI and economic growth

Developed v emerging markets

Sources: Markit, JPMorgan

Developed world growth edges higher

Developed world growth continued to be led by the UK, and the US where a rate hike later this year looks a strong possibility. However, resilient growth in the eurozone and signs of improving demand in Japan also provided positive news for policymakers. The PMI for the developed world edged higher to 54.4, up from 54.2 in June, though that's broadly consistent with just 1.5% annual GDP growth.

Developed world economic growth

Four largest developed economies

Sources: Markit, Nikkei, CIPS

Emerging market weakness led by China stagnation and Brazil's collapse

At 50.1, the Markit Emerging Market PMI remained close to the recent low of 49.6 seen in June, suggesting emerging market GDP grew at a meagre annual rate of around 4%. With the exception of the 2008-9 crisis, emerging markets have not seen such weak growth since 2001. A deepening downturn in Brazil was accompanied by near-stagnation in China. Better news came from modest upturns in Russia and India.

Emerging market economic growth

Four largest emerging markets

Sources: Markit, Caixin, Nikkei

Use the download link below to access a full overview of the July PMI surveys, including details of all major economies, policy implications and the market impact.

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